12. Deductions from Wages

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DEDUCTIONS FROM WAGES

 

GENERAL RULE

PART VI, SECTION 51(1) OF THE LABOUR STANDARDS ACT PROVIDES FOR THE GENERAL RULE: “NO EMPLOYER MAY MAKE DEDUCTIONS FROM WAGES OR OTHER AMOUNTS DUE TO AN EMPLOYEE EXCEPT AS PERMITTED BY OR UNDER THIS SECTION.”

SECTION 51(1) PROHIBITS AN EMPLOYER FROM MAKING DEDUCTIONS FROM WAGES EXCEPT UNDER SPECIFIC CIRCUMSTANCES. ONE OF THE SPECIFIC CIRCUMSTANCES IS WHEN DEDUCTIONS ARE “AMOUNTS” THAT HAVE PRIOR WRITTEN SIGNED AUTHORIZATION FROM THE EMPLOYEE. FOR SUCH DEDUCTIONS, THE AUTHORIZATION MUST BE IN WRITING, SPECIFIC TO A PARTICULAR SUM, AND BE GIVEN BY TRULY CONSENTING TO THE PAYMENT THROUGH A PAYROLL DEDUCTION. THE SUM MUST HAVE BEEN ORIGINALLY A BENEFIT RECEIVED BY THE EMPLOYEE.

 

WHAT CAN BE DEDUCTED FROM AN EMPLOYEE’S PAY CHEQUE?

  • DEDUCTIONS REQUIRED BY FEDERAL OR PROVINCIAL LAWS SUCH AS TAXES AND EMPLOYMENT INSURANCE PREMIUMS.

  • DEDUCTIONS AUTHORIZED BY COURT ORDER SUCH AS CHILD SUPPORT GARNISHMENT OR BY A COLLECTIVE AGREEMENT SUCH AS UNION DUES.

  • OVERPAYMENT OF WAGES.

  • SPECIFIC AMOUNTS AUTHORIZED IN WRITING BY THE EMPLOYEE.

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DEDUCTIONS FROM WAGES

 

BLANKET AUTHORIZATION

A GENERAL BLANKET AUTHORIZATION IN EMPLOYMENT CONTRACTS, WITH OR WITHOUT SPECIFIC AMOUNTS, MAY OPERATE TO ASSIGN RESPONSIBILITY OR LIABILITY TO THE EMPLOYEE, BUT THE CORRESPONDING DEDUCTION REQUIRIES SPECIFIC AUTHORIZATION.

 

SUMMARY

EMPLOYERS CANNOT DEDUCT MONEY, ALLEGED TO BE OWED BY AN EMPLOYEE TO THE EMPLOYER, FROM AN EMPLOYEE’S WAGES WITHOUT THE EMPLOYEE AGREEING TO THE DEDUCTION, IN WRITING, AT THE TIME OF THE DEDUCTION. IN THIS WAY, THE EMPLOYEE UNDERSTANDS WHAT HE / SHE IS SIGNING AND HOW OR WHEN IT WILL AFFECT THE WAGES OF THE EMPLOYEE.

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FOR FURTHER INFORMATION CONTACT: 

LABOUR STANDARDS COMPLIANCE OFFICE 

BOX 1000, STN 590

IQALUIT, NUNAVUT X0A 0H0

 

TEL: 1-867-975-6322 TOLL FREE: 1- 877-806-8402

FAX: 1-867-975-6367

 

THIS IS A GUIDE ONLY

FOR INTERPRETATION AND APPLICATIONPURPOSES, REFER TO THE NUNAVUT LABOUR STANDARDS ACT, ITSREGULATIONS AND AMMENDMENTS.